Sanctuary admits to bid talks

SANCTUARY Group, the music company that represents the likes of Elton John, Morrissey and Iron Maiden, today admitted it has been in talks that could lead to it being taken over but stressed no deal is imminent.

The company was ordered by the Stock Exchange to put out a statement following speculation about a bid. However, the wording of the announcement was extremely cautious.

While admitting to 'preliminary talks', the company added: 'During the last 12 months, and indeed on a continuing basis, [Sanctuary] has had exploratory discussions with a number of third parties about a wide range of future potential business development and investment opportunities.'

Sanctuary is thought to have attracted the interest of trade bidders because of its relatively robust performance at a time when sentiment has been negative in a sector plagued by illegal music downloading and concerns about where future profit growth can be drawn.

The group has been diversifying away from recorded music, where profit margins are under pressure.

It bought Elton John's artist management company Twenty-First Artist in April, in a move that will see it scoop a commission on the millionaire artist's earnings for the next five years at least.

Sanctuary is 19.4% owned by Big Brother inventor John de Mol's Talpa Capital.Shares in the group have jumped from a low of 38p last month to 48p today.

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